An Increase in the Budget Surplus

question 86

Multiple Choice

An increase in the budget surplus

• A)raises net exports and domestic investment.
• B)raises net exports and reduces domestic investment.
• C)reduces net exports and raises domestic investment.
• D)reduces net exports and domestic investment.

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Definitions:

Cram

The practice of intensely absorbing a large amount of information in a short period of time, often used in the context of studying.

Sequence

A specific order in which related events, movements, or things follow each other.

Prototype Model

A model emphasizing that when people evaluate whether a given item reflects a certain concept, they compare the item with the most typical item(s) in that category and look for a “family resemblance” with that item’s properties.

Availability Heuristic

A prediction about the probability of an event based on the ease of recalling or imagining similar events.